Gold prices fell to a three-week low as investors flocked to the US dollar following the announcement of Donald Trump winning the 2024 US presidential election. Reports suggest that gold price is under considerable downward pressure, following the recent events.
Backing this, Mohamed Hashad, Chief Market Strategist, at Noor Capital, suggests that the dollar index, which measures the performance of the US currency against a basket of major currencies, rose to 105.22 points compared to the previous daily close of 103.42 points.
“The DXY Index fell to its lowest level on Wednesday’s trading at 103.70 points compared to the highest levels recorded at the same current levels. There is an inverse relationship between the US dollar and gold, which led to a sharp decline in the precious metal after the rise achieved by the US currency,” he stated.
XAU/USD has suffered since Trump’s victory announced
In 2018, China’s property market was a major engine of growth, accounting for nearly a quarter of the country’s economic activity. However, since 2021, the real estate sector has been in a sharp decline, severely impacting local government revenues and exacerbating fiscal pressures. This downturn has left many local governments burdened with unsustainable levels of debt, limiting China’s capacity to respond effectively to external economic shocks, such as the potential impact of new tariffs.